Keppel Offshore & Marine's unit Keppel Shipyard on Thursday secured a floating production, storage and offloading (FPSO) vessel conversion contract from its customer SBM Offshore.
The contract is for the conversion of a very large crude carrier (VLCC) into an FPSO, which will be deployed to ExxonMobil-operated Liza field off the coast of Guyana, the company said in a statement.
The Liza field is roughly 190 kilometers off the coast of Guyana, with a production capacity of about 120,000 barrels of oil per day.
The shipyard's work scope includes refurbishment and life extension works, such as the upgrading of living quarters, fabrication and installation of spread mooring systems, as well as the installation and integration of topside modules.
The converted FPSO will have a storage capacity of 1.6 million barrels of crude oil and is capable of producing up to 120,000 barrels of oil per day.
The vessel will have a gas treatment capacity of about 170 million standard cubic feet per day and a water injection capacity of about 200,000 barrels of water per day, the statement said.
The contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year, the company said.
Shares in Keppel Corp fell 0.1 percent to S$6.51 on the Singapore Exchange. The stock has gained 12 percent so far this year.